FedWatch Tool Points to June for Next Rate Hike after FOMC Minutes

Fed funds futures are now not pricing in the next rate hike until June, according to CME’s closely watched FedWatch tool.

Previously, the implied odds favored a hike in March.

The odds for a hike in June now stand at 65 percent, the first time they are better than 50-50.

Separately, RBS said the market is pricing in one hike this year and a 70 percent chance of a second hike, down from two full hikes earlier in the week. This is based on RBS interpretation of overnight index swaps data.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza